Dinesh Kamath's Editorial (The Indo-US relationship is improving – a good sign!) that was published in Newsband

The Indo-US relationship is improving – a good sign!

The Indo-US relationship is improving at a rapid pace. That’s a good sign. In the recent joint declaration made by the two countries, they laid out a wide array of initiatives in areas like strategic cooperation; counterterrorism; intelligence; energy and climate change; education and development; trade, and agriculture; science and technology; health and innovation.

One must give importance of trade ties in our collective economic trajectories. The far-sighted Indians welcome US engagements and investment in our burgeoning economy. They are supportive of a strong economic and strategic partnership with the US, which will benefit both countries in the long run. This partnership assumes a critical dimension in the backdrop of the steady rise of China, a fractious geostrategic environment in West Asia and South Asia and the recent economic developments in Europe.

In their interactions with the US, they have witnessed a common thread - there is deep concern over India's economic future and how it affects the bilateral relationship with the US as a whole These pro-US Indians are making efforts to reinforce faith in India's democratic economic system. They are emphasizing upon Indian industry's deep commitment to bilateral trade ties, which is of critical importance.

Overall trade between the US and India is poised to cross $100 billion this year - a quantum jump from $80.1 billion in 2009. The US is India's third-largest trading partner, the second most important export market, and the fifth most important source of imports. India was the US's 12th largest goods export market in 2010. Total American foreign direct investment (FDI) into India in 2010-2011 was $9.52 billion, while India has emerged as one of the fastest growing sources of FDI into the US, with $6.6 billion invested between 2000 and 2010. Both Indian and American companies are, thus, creating jobs and value systems in each other's countries, along with their own.

There are tremendous opportunities for greater engagement in sectors like defence, healthcare, infrastructure, agriculture supply chain and clean energy, which can further boost this bilateral partnership. India's lead in providing products and services to the 'bottom of the pyramid' through frugal innovation, combined with American technical and managerial know-how and leadership, will make for a win-win situation for businesses on both sides.

The potential for collaboration between India and the US still remains largely untapped. Business can help revitalise this critical relationship. Let's hope that governments on both sides will supplement industry's efforts through policies which are stable, consistent and transparent.